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Balance of Power: Germany Rules the Roost

Balance of Power: Germany Rules the Roost

Germany’s formidable finance minister was in fine form yesterday. Full of optimism about Europe and effusive in his praise of Emmanuel Macron, Wolfg

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Germany’s formidable finance minister was in fine form yesterday. Full of optimism about Europe and effusive in his praise of Emmanuel Macron, Wolfgang Schaeuble still managed to show who rules the roost in Europe.

A throwaway remark on Greece moved the bond market. His suggestion that Britain still has time to forget about Brexit went viral. And Macron himself picked up on that theme later in the day. In the middle of all that bonhomie, Schaeuble issued a veiled warning that Angela Merkel probably won’t go as far as Macron wants to bolster and reform the euro zone.

For all the hype surrounding France’s new president, Schaeuble’s interview at Bloomberg’s Germany Day conference in Berlin was a reminder about where the power lies in Europe.

Merkel may not like to hear it, but in the age of Donald Trump, Germany is re-emerging as an alternative global power in Europe and beyond.

Trump will be reminded of that fact when the two meet at the G-20 summit in Hamburg in early July, with tensions already crackling on everything from trade to climate change.

finance.yahoo.com

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